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Industrial Relations
.. . in Canada
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by
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GEORGE SAUNDERS
Associate Professor
of Industrial Relations
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INfuiS l·iBRARY
McMaster University
Summer, 1984 NOm�c�RCUlATING
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Innis
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'.· HB Research and Working Paper
Series No. 229
74.5
.R47
no.229
INDUSTRIAL RELATIONS IN CANADA
PAGE
I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. The Beginnings 1
b. The Second Hal f of the N ineteenth Century • • • • • • • • • • • • • • • 2
c. The Emergence of National Federations • • • • • • • • • • • • • • • • • • • 4
d. Labour Disunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
e. The 1930s and Renewed Union Growth • • • • • • • • • • • • • • • • • • • • • • 8
f. Drive to Labour Unity • • • • • • • • • • • • • • • • • e e o • • • • • • • • • • • • • • • 9
g. International Unions and Canadian Autonomy • • • • • • • • • • • • • • 12
h. Some Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
a. Introd.uction . • • • • • e . . . . o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
b. Leg islative Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
VI I . Conclus ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
References 62
I11dustria:l, Relations in Canada
I Intrc::duction
This survey provides both a h i s torical and cu r r ent per spective on the
primarily for those who require an intrc::d uction to the subject. The survey is
divided into six sections. The follow ing sec t i on , Section II gives a b rief
reviews briefly public sector collective bargaining and Section VII concludes
the chapte r .
i s the dec i s i ons of the courts , arbitr ation and labou r relations b oards
established under the statutes is not covered in this survey. These decisions
i nte rpret , define and explain the complex web of rules contained in the
relations .
The Canad ian labou r movement had its beg innings in the late 18 th and
cond itions of work were found as early as 1794. The first union of record was
- 2 -
1827 to regulate wages , care for their sick and provide a place for sccial and
present day .
early developments in the growth of the Canadian labour movement. The little
evidence that exists suggests that early unions were generally found in urban
ar eas in Onta r i o , Quebec and Nova Scot i a . I n the main , they w e re local
early locals came from skilled B r i t ish immi grants. Lack of f inances , a
hosti le legal env i r onment and employer oppos i t i on kept the union m ovement
Attempts by unions to j oin together for mutual support often ran afoul of
sett i ng wage s , tak ing str i ke act i on and pe rforming oth e r organ i zat i onal
activities were generally deemed unlaw ful. H oweve r , prosecuti ons w e re not
to court action.
In the 1850s and 1860s American assistance in the form of personnel and
addition , city assemblies of lccal unions were formed and for the most part
- 3 -
were able to stay together despite an anti-union environment and the lack of
legal protection.
Union activity accelerated in the 1870s and 1880s as public opinion began
to shift in support of the struggles of the ave rage working man aga i nst the
abu ses of indu str i ali zation . Examples of these abuses can b e found i n the
report of the Royal Commission on Labour and Capital. The Commission , which
handed down its repor t in 1888 , catalogued a long list of beati ngs ,
Howeve r , it w as two spec i f i c events in the 187 0 ' s that finally led to
government action to free trade union organi zation from the shackles of the
law .
Toronto, in particular bore the brunt of the opposition and the law leading to
a number of imprisonments .
The second event was passage of the Trade Union Act in the B r i t i sh
un ions in the Uni ted Kingdom . The Canad i an Parliament w as qu ick to follow
toge the r to bargain for h i gher wages and better working cond i ti ons . At the
same time the federal government passed the Criminal Law Amendment Act , which ,
along w i th the Trade Union Act legali zed str i ke activity , but also prov ided
penalties for violence or intim idation dur i ng organi z ing campai gns and
strikes .
- 4 -
In 1873 the first national labbour movement was founded with the
from di fferent cities across Ontario . Thi s was followed by the Knights of
skilled and unskilled workers alike into general unions and trade assembl ies .
The Knights ' ph ilosophy of the equali ty of working men , the dignity of labour ,
and thei r pos ition against monopolies held great appeal , as did their
race , sex , sk ill or occupation , " excluding only lawyers , bankers and the
liquor industry" . 2
By 1890 the Knights had organized more than 257 assemblies across the
those days . 3
out by the end of the 1870s and the Knights , after reaching a peak in the
1890s , began a slow decline and eventually d isappeared before World War I .
the Knights of Labour , and the growing number of international unions (that
is , unions whose headquarters are in the United States) came together to form
the Trades -and Labour Congress (TLC) the same year as the Amer i can
1 However ,
that organi zation was racked by strikes , led , in the main , by
the lesser-skilled members . Most of these str ikes were lost and in the end
was a major factor in the decline of the Knights .
2o .
Morton , The History of Canadian Labour , in J . Anderson and M .
Gunderson , editors , Union-Management Relations i n Canada , Addison-Wesley, Don
�
Federation of Labour (AFL) was establ ished in the U.S. In both countriesthese
were the first permanent national labour federations. They were to remain
From the very beg i nn i ng o f the TLC , intern a l tens i ons and conf l i cts
pitted the internationa l s ca:nprising, in the main, craft unions, against the
Knights of Labour and the national unions (that i s , purely canadian unions) .
A maj or source was the rivalry among the three groups of unions for organi zing
minimize minimize internal confl i cts that served only to weaken the labour
I
movement in a hosti l e env ironment, the international craft unions made it a
cardinal pr inciple that one union and onl y one uni on have the j ur i sd iction to
g:ui l ty of "dual unionism" and threatened with expul sion from the federation.
The international unions had staked out their j urisdictions but were not abl e
Labour. The resul t was constant inter-union competition and raiding to the
The s t r ugg l es among the three groups of uni ons over r a i d i ng and other
i ssues that s eparated them continued th roughout the rema inder of the
ni neteenth century. In 1 9 0 2 the TLC unde r pressure from the AFL in the U.S.
and its international aff i l iates final ly expel led the Knights of Labour and
several of the national unions , dupl icating a simi l ar expu l s i on in the name of
conf l ict. The ousted unions joined together to form the canadian Federation
of Labour (CFL) wh i ch , for a few year s , pos ed a threat to the TLC but
eventua l l y decl ined becoming a sma l l , insigni ficant reposi tory of unions that
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In the meantime , a purely Quebec labour movement based on the culture and
language of that province began to emerge in t�1e early years of this century .
In 1918 , the clergy in Quebec took the lead to form the National Central
Trades Counci l in Quebec City, which , i n 1921 became the Confederati on des
the 1950s never being able to attract the majority of French Canadian
labour relations in Quebec in the inter-war period reflecting the Church ' s
most successful was the One Big Union (OBU) founded in 1919 as a reaction to
disenchanted locals of international and national unions , was able to r ide the
crest of the Winnipeg General Str ike of 1919 reaping large membership gains
from it. The str ike saw some 25 , 000 to 30 , 000 Winnipeggers from all walks of
The imnediate spark that started the str ike was the refusal of Winnipeg
employers to deal with a newly formed metal trades counc i l . But the scope of
the str ike reflected the general unrest following World War I. The strike
ended on June 26 after much violence , mass imprisonment , and l i ttle gain by
the labour movement . For the OBU , the strike saw its membership soar to a
peak of 40 , 000 . After the strike the OBU went j ust as quickly into a decl ine
and although it remained in existence until the early 1950s , it never regained
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The demise of the OBU did not mark the end of radical or revolutionary
unionism. This unionism did remain alive in a variety of forms dur ing the
1920s but its activi�y l ike that of the rest of the labour movement was
cons iderably reduced . The 1920s were generally prosperous years for the
reasonably stable and wages rose. Despite this prosperi ty and easy
membership was stagnant largely because unionism was not yet ready or was
!
'unable to organize the emerging mass production industri es and because
management often with the help of government found effective ways to stave off
In 1927 purely Canadian unionism took another large step forward when the
CFL , formed in 190 2 , was reorganized . Buttressed by remnants from the OBU ,
d issati sfied TLC unions and independent Canadian national unions such as the
Congress of Labour (ACCL) • Its obj ective was "to achieve the complete
foreign control and by organizing the workers of Canada in industr ial unions
By the end of the 1920s Canadian labour was in a weakened and disunited
posi tion. Unlike the united movement in the U.S. under the American
disregarded by employers .
1 staternent of
Aaron Mosher , President of the ACCL , quoted in s . Jamieson ,
ibid , page 22 .
- 8 -
The depression in the early 1930 ' s further weakened and disunited the
labour movement . Severe membership losses were experienced and a new r ival
:abour federation emerged in the form of the Workers Unity League established
by the Communist Party at the beginning of the depression . The League lasted
a few short years . When it was disbanded its members and organizing personnel
j oined , where possible , the TLC and ACCL . Although short-lived the federation
had an important and divisive influence on Canadian labour that lasted through
The fortunes of the Canadian labour movement took a turn for the better
Congress passed the Wagner Act which i n effect opened up the large mass
production industr ies in the U . S . to unioni zation . Unti l that time , labour
the law unionization made l i ttle headway in the large scale industries or
indeed in any sector except the crafts and trades . The Wagner Act helped
close thi s gap in the law by giving American workers the right to organize
into uni ons of their own choosing , protecting this right and ccrnpell ing
employees .
With the passage of the Act new industry-wide unions quickly sprung up in
thi s solid base these unions quickly spread into Canada and successfully
The TLC was initially the main beneficiary of thi s dr ive helping it to
reach new peaks of membership before the end of the decade of the 1 930s . At
the same time these new industr ial unions generated the same old tensions that
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had plagued the earl ier struggles between the international crafts and the
1 93 7 , the AFL in the U.S. expe l l ed these new industrial unions, which in turn
formed the r i val federation , the Congress of Industr ial Organi zations (CIO).
The TLC did the same in 1 940 under pressure from the AFL and the international
crafts. These expel l ed industrial unions were wel comed into the national istic
ACCL despite the stance of the l atter on international unions. The ACCL
found common ground with these new international s in their methods o f union
Both the TLC and the new CCL exper ienced unprecedented membership gains
during the war and postwar per iods. Union membership soared from a depression
low of 281 , 000 in 1934 to 359 , 000 before the outbreak of war in 1939 to more
than 1 , 000 , 000 members in 1949. Despite these successes , conflicts and
tens ions continued to plague the labour movement. The two congresses vied
with each other for members and both experienced a signi ficant penetration of
Workers Unity League. The struggles sapped the energies of the movement. It
was not unti l the corrmunists were expelled from the movement in 1949 and
membership growth of the two organization slowed that progress was made toward
The merger of the two Congresses finally occurred seven years later when
in 1956 the TLC and the CCL j oined together to form the Canadian Labour
Congress (CLC). (The same event occurred independentl y at about the same time
in the U.S. when the APL and the C I O merged to form the AFL-C I O ) . Wi th the
format i on of the CLX , the l abour movement in Eng l i sh Canada was uni ted i nto
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one federation for the first time since the turn of the century.
Attempts were made at the same time to merge with the CCCL in Quebec and
largely because of the signi ficantly different phi losophy and approach of the
two federations and the sharp language and cul tural differences .
Nevertheless , the CLC , through its provincial affiliate , the Quebec Federation
workers . At the time of the TLC-CCL merger some 340 , 000 Quebec union members
belonged to the QFL while only about 100 , 000 belonged to the CCCL .
Intense competi tion for union members in Quebec resulted in the CCCL
postwar Quebec involved this once acquiescent union federation . Three key
strikes which contributed dramatically to the evolution of the CCCL were the
Asbestos strike in 1949 , the copper mining str ike in Murdochville in 1947 , and
the str ike of the CBC French language producers in 1959 . Although the latter
two involved QFL aff i l iated unions , the CCCL played key roles to the extent
that brought it into direct confrontation with the goverrnnent and the Church .
The growing militancy of the CCCL f inally resulted in i ts break from the
Church . At its 1960 convention the CCCL dropped the last vestiges of its
identi fication with the catholic Church and changed its name to the
Centrale des synicats democratiques (CSD) or Center for Democratic Uni ons
broke off from the CNTU . However , this federation remains small with a
membership of about 40 , 000. To all intents and purposes , then , since 1956
most union members belong to unions affiliated with the CLC or the much
smaller CNTU . These two bodies have been the major central organi zations .
Several other , but much smaller organi zations , ·such as the CSD in Quebec and
- 11 -
the Confederation of Canadian Unions ( CCU) also ex ist but in total represent a
international unions ( 13) and a fairly large number of national unions ( 86)
and independent local organizations are not affiliated with any canadian
represent some 1 , 000 , 00 0 union members or about 28 per cent of all union
members in Canada .
The potential of another break in trade union uni ty has occurred in the
past two years with the suspension of the building trades unions representi ng
about 350 , 000 union members from the CLC for non-payment of dues . There are a
var iety of reasons for the break , not the least of which is the fundamental
di fference between the CLC and the building trades unions over voting rights
at CLC Conventions and political support of the NDP. The numerous bui lding
that favours unions with large numbers of locals . 1 Also the CLC ' s active
your friends and punishing your enemies" , a principle that works well in the
U .S. system o f pol i t ics but not a s well i n the Canad ian parliamentary system
of government . However, the most irrmediate reason for the break was the
failure of the CLC to support these unions in their squabble over raiding by
the CLC affiliated QFL in Quebec . In 1982 some 1 0 of the 13 bui lding trades
unions , with a membership of some 200 , 000 , founded the Canadian Federation of
Labour. (This is the second time in canadian labour history thi s name has
1 For
example the canadian Union of Publ ic Employees (CUPE) has 1 , 629
locals and a membership of 267 , 00 0 ; the Public Service Alliance (PSA) has
l , �07 locals and a membership of 155 , 000 . In contrast , the bui lding trades
unions with a combined Canadian membership of approximately 350,000 has 689
locals in canada .
- 12 -
number of unaffiliated unions , Canadian labour i s once again moving away from
the posi tion of uni ty achieved in the 1956 merger of the TLC and CCL.
The current building trades dispute with the CLC and the QFL , which wants
to establ i sh its own bu ilding trade unions , may also be seen as another
chapter in the recurring battle for union autonomy from U.S. domination , a
battle that has characteri zed the history of the Canad ian labour movement
since the first international unions appeared on the scene in the 1850s. In
the past these outbreaks have often led to breakaway federations formed by
purely canadian unions ousted from the established movement. The current
international unions who are in the process of breaking away from the
has been helped by the phenomenal growth of national unions consequent upon
late 1960s and 1 970s. The emergence of these unions and other national unions
is shi fting the balance of union membership in the CLC away from the
part of the CLC for the establ ishment of autonomous Canadian divis ions of
divisions.
completely away to form their own purely Canadian unions . The Canadian
Union i s a good example of one such union that has been fanned in this way .
always with the blessing of the international union once some measure of
their Canadian membership desi re i t . The fact that s o many Canadians conti nue
structure . It was the international union movement that gave substance and
strength to the Canad ian labour movement , and , for a high proporti on of
The table below (Table 1) traces the growth of union membership since
191 1 , the first year officials statistics were collected . In that year some
133 , 000 workers belonged to trade unions . Some 7 2 years later in 1983 union
membership stood at about 3-1/2 mill ion , a more than 25 fold increase . As a
per cent were in these uni ons ( see Table 2) • About 200 thousand or 6 per cent
belonged to CNTU affiliated unions , another 6 per cent belonged to the new CFL
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Table 1
1911 133
1912 160
1913 176
1914 166
1915 143
1916 160
1917 205
1918 . 24 9
1919 378
1920 374
1921 313 9.4 16 . 0
1922 277 8.2 13 . 6
1923 278 8.1 13.2
1924 261 7.5 12. 2
1925 271 7.6 12.3
1926 275 7.5 12.0
1927 290 7.7 12.1
1928 301 7.8 12.1
1929 319 8.0 12.6
1930 322 7.9 13 . 1
1931 311 7.5 15 . 3
1932 283 6.7 15 . 3
1933 286 6.7 16.7
1934 281 6.5 14 . 6
1935 281 6.4 14 . 5
1936 323 7.2 16 . 2
1 937 383 8.5 18 . 2
1938 382 8.3 18 . 4
1939 359 7.7 17 . 3
1940 362 7.9 16 . 3
1941 462 10.3 18 . 0
1942 578 12 . 7 20 . 6
1943 665 14 . 6 22 . 7
1944 724 15 . 9 24 . 3
1945 711 15 . 7 24 . 2
1946 832 17 . 1 27 . 9
1947 912 18 . 4 29 . 1
1948 978 19. 4 30. 3
1949 l , 006 (a) 19 . 3 29 . 5
1950 - ( b) - -
1951 1 , 029 19 . 7 28 . 4
1952 1 , 146 21 . 4 30 . 2
1953 1 , 220 23.4 33 . 0
1954 1 , 26 8 24 . 2 33 . 8
19 55 1 , 268 23 . 6 33 . 7
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Table I ( continued)
1956 1 , 35 2 24 . 5 33 . 3
1957 1 , 38 6 24 . 3 32 . 4
1958 1 , 454 24 . 7 34 . 2
1959 1 , 459 24 . 0 33 . 3
1960 1 , 459 23 . 5 32.3
1961 1 , 447 22 . 6 31 . 6
1962 1 , 423 22.2 30 . 2
1963 1 , 449 22 . 3 29 . 8
1964 1 , 493 22 . 3 29 . 4
1965 1 , 589 23 . 2 29 . 7
1966 1 , 736 24 . 5 30 . 7
1967 1 , 921 26 . 1 32 . 3
1968 2 , 010 26 . 6 33 . l
1969 2 , 075 26 . 3 32 . 5
1970 2 , 173 27 . 2 33 . 6
1971 2 , 231 26 . 8 33 . 6
1972 2 , 388 27 . 8 34 . 6
1973 2 , 591 29 . 2 36 . 1
1974 2 , 732 29 . 4 35 . 8
1975 2 , 884 29 . 8 36 . 9
1976 2 , 042 30 . 6 37 . 3
1977 3 , 149 31 . 0 38 . 2
1978 3 , 278 31 . 3 39 . 0
1980 3 , 397 30 . 5 37 . 6
1981 3 , 487 30 . 6 37 . 4
1982 3 , 617 31 . 4 39 . 0
1983 3 , 563 30 . 6 40 . 0
and the remainder belonged to the AFL-ClO only or to smaller federations and
CLC. Generally international unions that belong to the CLC also belong to the
Aerospace and Agr icultural Implement Workers of America ( in short the United
Auto Workers or UAW) , for example, belongs to the CLC but not to the AFL-CIO.
The construction unions recentl y suspended from the CLC sti l l bel ong to the
AFL-CIO in the U.S. Some internationa l s bel ong to neither federation. The
belong to the CLC . Some 23 internationals are not affi liated with the CLC ,
leaving some 51 international unions representing j ust under 1 mill ion uni on
members who are so affiliated . In contrast some 121 of the 146 national
unions are not affil iated with the CLC. The 27 national unions which are
affil iated , account for more than one mill ion union members , marking the first
time since i ts establ ishment in 1956 that union members belonging to purely
Also , these few affiliated national unions represent more than one-half of the
are not aff i liated with any federation . In the main, these are professional
unions and unions in the provincial publ ic sector , particularly in Ontar io and
Quebec . '·,
Table 3 also shows that international unions represent about 40 per cent
of all union members in Canada . Thi s is a complete reversal of the histor ical
pos ition of the internationals . Before the rapid growth of publ ic sector
unionism in the late 1960s and 1970s international unions invar iably compri sed
about 70 per cent of Canadians belonging to unions . This shift in the balance
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Table 2
Membership
CLC . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 2 013 050 56. 5
AFL-ClO/CLC • • • • • • • • • . • • • • • • • • • • • . • • • • • 851 341 23. 9
*Cr.£ only . . . . . . . . . . . • . . . . . . . • . • . . . . . . . • 1 161 709 3 2. 6
CNTU • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 213 370 ·6 . 0
AFL-ClO/CFL • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 213 301 6. 0
CSD • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 56 826 1.6
ccu . . . . . . . . . . . . . . . . . . . .
. . .. . ..... . . . . . . 38 684 1. 1
AFL-ClO only . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 515 4.7
Unaff i liated International Unions • • • • • • • 104 268 2. 9
Unaff i l iated National Unions • • • • • • . • • • • • 654 034 18 . 4
Independent Local Organi zations • • • • • • • • • 101 751 2. 8
cons iderable number comes from the establishment of autonomous unions of once
The point of departure in this survey has been the central federations
bargaining , the raison d ' etre of North American unionism. Rather their major
particularly to those unions which are too small to prov ide these services
themselves , and to co-ordinate union activities .
- 18 -
Table 3
Membership
No . of No . of
Type of Affiliation Unions Locals
Number Per cent
This latter function includes settling di sputes among aff i l iated unions ,
boards , agencies , etc . , and act ing as labour spokesmen in internat ional forums
and international union centres .
- 19 -
affairs of society , central federations like the CLC play an important role
lobbying and making known to the government of the day the views and desi res
of the labour movement . The var ious federations , as well as the larger
conceivable economic , social and poli tical i ssue in which labour has an
interest . This includes not only issues related to labour legi slation but
also economic and monetary policies , housing programs , international trade and
the CLC indicate that there is virtually no maj or i ssue which escapes the
In the last few years these federations have also played a key role
affiliates do not engage in union organi zing drives which encroach upon one
guilty of raiding .
basis of North American unionism. Yet such raiding is comnon . Much of thi s
purely Canadian unions . It is not uncommon to find one group of electr ical
promoted endless conflicts between these unions and the internationals over
the same group of workers . The current conflict between the international
bui lding trades unions and the Quebec Federati on of Labour i s a prime example
of this conflict .
drivers and warehousemen but its consti tution provides it with the mandate to
constitutions and in the case of the Teamsters has been interpreted by that
aggressiveness in thi s respect was the pr incipal reason for its expuls ion not
only from the CLC in Canada but also from the AFL-ClO in the U . S .
which none of the affiliates are interested in organi zing a particular group
of workers , the CLC, for example , may step in and unionize these workers into
local organi zations directly affil iated to it . The CLC will handle the
affairs of these local organizations , much as its aff iliated unions conduct
their own affairs , until j ur i sdiction can be decided . Once j ur i sdiction has
been settled , these local organi zations become part of the structure of an
affiliated union . In thi s sense , the CLC and most other federations perform a
represented by unions .
Table 3 shows that in 1983 about one per cent of union membership was in
activities for which they are responsible is very much dependent on the power
their affiliated unions are prepared to give to them and the personal i ty and
- 21 -
style of the federation leadership. George Meany, former pres ident of the
AFL-CIO in the U . S . , ruled that organization with an iron hand for many years .
Although his power and influence were derived from the aff i l i ated unions of
that federation , few within the labour movement questioned his decisions and
few without ignored his pronouncements . Few labour leaders i n Canada have
achieved thi s stature although there have been wide var iations among them in
conventions resolutions are passed which prescribe the pol icies and programs
of labour . Generally, the unions affiliated with the CLC are also affil iated
tasks at the provincial level as the CLC does at the national level including
levels , are local labour counc i l s comprising the local branches of CLC
Since the CNTU has few members outside Quebec , it acts as both the
( b) Types of Unions
In general , there are two types of unions , industrial and craft . The
unions include all workers in steel , auto and related industr i es regardless of
occupation.
on the type of union organi z ing thei r workers , companies could be faced with
anywhere from one union , an industr ial union , to many unions ( 1 5 to 20 unions
would not be unusual) i f the craft type of organi zation prevai ls. Deal ing
with many unions presents problems since should one of them strike and set up
in all l ikel ihood , respect that picket l ine effectively closing down the
company. Industrial and craft-type unions are found among both national and
international unions.
with 50 , 00 0 or more Canadian members. In 1983 there were 16 unions which fell
(CUPE) wi th a membership of 281 , 242 . It can be seen that of the five largest
unions , three are national all in the public sector . Before the growth of
these relatively new unions the largest individual unions in Canada were the
canplete . Among major industry groups union membership ranges between less
than one per cent of employees in agr iculture and finance, insurance and real
and rubber . Most blue collar workers are organi zed but only a minority of all
The bas ic bui ld ing block of the individual union is the local . I t is the
local that is responsible for the day-to-day relationships with employers and,
in most unions , for negotiat ing the collective agreement . Locals may canpri se
There are more than 1 5 , 000 locals in Canada . The number of locals per
union varies . Some 36 unions have less than 1 0 locals and another 25 have
more than 100 locals . The steelworkers has 853 locals, the Publ ic Service
locals organizations with a membership of about 100 , 000 that do not belong to
any union or central federation . These are usually organi zations based in one
enterpr ise. For example, many faculty associations in universi ties are
recogni zed unions that are not part of a larger or national organi zation .
Like unions themselves , locals are of varying s i zes ranging from a few
members to many thousands . Two of the largest are the auto workers local in
Oshawa with about 1 2 , 000 members and the steelworkers local in Sudbury with
Despite the longevity of some union leaders the typical Canad ian labour
Table 4
Membership
federation level are elected to their posi tions . For most unions , elections
Fai lure of union officers to respond to the wishes of their members could
spell certain defeat at the ballot box . This has been the fate of many union
leaders especially at the local level during the past ten years because they
have not been mil itant or aggressive enough for the rank and file .
The militancy often ascribed by the press to union leadership has in fact
its roots in rank and file restlessness . Two factors have contr ibuted to this
inflation and high interest rates and r i s ing aspirations for more . Turnover
of union officers has been one symptom of this restlessness . Another has been
- 25 -
The Trade Union Act of 1872 is generally regarded as Canada ' s first piece
of labour relations legis lation. That Act permi tted workers to form unions to
better thei r wages and working conditions without fear of being subjected to
century, the Federal Parliament passed the Conc i liation Act . The Act
settle di sputes . The procedure was voluntary , that i s , it was dependent upon
procedure by the other party . Boards , when established would bring the
which the parties were free to accept or rej ect . The pressure of public
opinion gave Board reports some force and was at times an effective mechanism
in inducing settlement .
In 1903 , the federal government passed the Rai lway Disputes Act , which
made the conc i liation procedure ccxnpulsory. The procedure could be set in
extending the 1903 Act to a larger coverage of industr ies . That Act
- 26 -
conciliation process was completed . Previously either party could str ike or
lockout before conciliation procedures were ccxnpleted . The IDI Act remained
in force until 1948 when replaced by a broader labour disputes act , which will
be described below.
In 1925 the j ur i sdiction of the IDI Act was success fully challenged in a
case involving the Toronto Electric Street Railway Canpany. The challenge
However , all provinces except Pr ince Edward Island passed enabling legislation
Although the IDI Act was a unique piece of legislation in the western
stoppage provisions , it did not protect workers ' rights to organize nor did it
compel employers to bargain with unions . Employers were free to thwart union
bargain with unions with major i ty support of the employees and they could
enter into "sweetheart" agreements with unions of their own choos ing .
Canada and were adopted by several provinces in new leg islation passed in
The federal government itself did not move in this di rection until 1944
when , under its emergency wartime powers , it passed P.C. 1003 , a Wagner-type
law made to apply to all industr ies whether under federal or provincial
j ur i sdiction. P . C. 1003 , which replaced the IDI Act during hositili ties , in
from a one step to a two" step procedure. Previously the conciliation process
by the parties before the right to str ike or lockout was granted to them.
P.C. 1003 also banned str ikes and lockouts during the term of collective
After the war , labour relations leg islation again reverted to provincial
j urisdiction. In 1948 , the federal government repealed the IDI Act replacing
it with the Industrial Relations and Disputes Investigation Act ( IRDI Act) .
This Act incorporated the pr inciples of P.C. 1 00 3 including the two stage
conciliation procedure , the ban on str ikes or lockout during the term of a
collective agreement , the protection of the right to organize , the canpuls ion
employees and the listing of both union and employer unfair labour practices.
The various provinces passed similar leg islation modeled after the IRDI Act.
In the 1950s the provinces began to move away from the IRDI Act model
introducing features into their own labour relations leg islation to meet the
Perhaps the most radical departure from the IRDI Act model was the
The federal goverrnnent waited unti l 1972 before it too finally changed
the new Canada Labour Code , Part v, passed in that year , an "arsenal of
follow one of several procedures set out in the Act , including appointing a
parties are free to strike or lockout provided the termination date of the old
agreement has passed and provided the minister was informed of the impasse .
If he does make an appo i ntment , the same ru l e s appl y as in the past and
strike or lockout action is i l l egal unti l the procedure has been compl eted.
In practice, the conc i l iation officer stage is sti l l used whi l e the
conc i l iation board stage has fal len into disuse. The practice in the various
prov inces is more or less s imi lar, that is, wide use of the conci l iation
officer stage as required and l i tt l e use of conc i l iation boards. In add ition ,
substi tute for the conc i l iation officer or conci l iation board. For example in
Ontario, the parties may sel ect a mediator and request his appointment. Once
selected the Ontar io l aw gi ves the med iator extensi ve powers of inquiry to
compr i ses the 1 1 gene ral acts ( 1 0 provinc i al and one fede ral) and numerous
par t i cular occupati ons such as pol i ce , f i r e f i ghte r s and teach e r s . I n some
in the gene ral acts. I n total the r e are about 45 separ ate acts not count ing
i n summary form , the contents of the labour relations legi slati on in each
p r i vate sector legi slati on using the fede ral and Onta r i o j u r i sd ic t i ons as
relati ons leg i slat i on in all j u r i sd ict i ons , whethe r gener al or spec i f i c .
2. Listing of unfair labour practices. These are practices which , otherw ise
legal under common law , are illegal in a labour relations context. For
- 30 -
taken .
agreement is in force is illegal and prov i s i ons for the arb itration of
5. Prov i s i on for the adm i n i st ration and enfor cement of the legi slat i on .
Each Act prov i des for a labour relat i ons board o r equ ivalent to
Each of these matters will be discussed in turn except for 4 which w ill
and negoti ate a collective agreement specifying the terms and conditions of
determ i nes the leg i t imacy of the uni on , the approp r i ateness of the uni t of
employees for which representation is being sought , and the extent of supp::> r t
the union has. In making these determinations , boards generally provide the
parties with the full opp::>rtunity to present evidence and make submissions .
- 31 -
dom i nated or controlled organi zations are not cons idered uni ons under
the more i mportant functions of the boa rd . Boards may accept the uni t
substracting employees. Units may cover all plant workers of one employer ,
plant workers of several employers in the same area , workers in more than one
plant of the same employe r , parts of a plant , and par t icular occupati ons or
c r afts . Mos t legi slat i on provide some gu idelines on the matter of the
approp r i ate unit. F or example , the a8ts m ay suggest that prof e s s i onal
Most acts also specify certain categories of workers who are not covered
prof ess ionals are not covered. Th i s means that these employees do not have
.
the protec t i on of the leg i slat i on should they w i sh to establi sh un i ons to
I n establi shing the approp r i ate uni t , boards generally pay close
un its , type of uni on organi zat i on ( industr i al or craft union) and the
determ i na t i ons involve a s i ngle plant and thi s i s a pr inc i pal reason why
W ith respect to the extent of employee support for the application , the
various acts spell out the steps that must be followed for this determination.
For example , in the Canada Labour Cede , Part V, if the board is satisfied that
more than 50 per cent of the employees in the unit are union members in gocd
I f such support is found to be less than 50 per cent but more than 35 per
the con s t ituency must cast ballot s . A maj or i ty o f those vot i ng dec i de the
these instances , employees who d o not cast ballots are in e ffect vot ing
The var i ous provinc ial acts follow s i m i lar procedures but d i ff e r i n
detail. For example , i n Ontario i f the board is satisfied that more than 5 5
pe r cent o f the employee s in the uni t a r e membe r s of the appl i cant union ,
cer t i f icat i on may be granted w i thout a vote. I f less than 55 pe r cent but
more than 45 per cent are union members a representation vote may be ordered.
I n a vote , a maj or ity of those voting dete rm i nes the outcom e . The re i s no
minimum p:rcentage requirements of those in the unit who must cast ballots
the dete rmination by the labour relations board of the need for a vote .
lose interest for one reason or another , for example , because of inac t i on
appl i cant uni on , sever al of the acts provide for pre-he a r i ng votes. Under
- 33 -
this provision in the act , the labour relations board will conduct a vote , if
hear i ng vote w i ll be held upon request of the union and if the board i s
cons t ituency are member s of the trade union . A pre- hear i ng vote usually
ball ot s are sealed unt i l the certi f icat i on proceedings have been completed.
Depending on the outcome of these proceedings the ballots w ill then be counted
appli cation for dece r t i f i cation can be m ade i f , once cert i f i ed , the union
that they do not want to be repre sented by a uni on . Whe re a n agreement has
made only at specified periods , generally within the last two months of the
term of the agreement. The employer can also apply for decertification of the
A part i cular thorny i ssue in labour relat i ons i s what happens should
business which is sold , most of the statutes provide that the certification
and existing collective bargaining agreements go w ith the business to the new
owne r s . The same gene r ally holds if par t of the bus i ness is sold or i f the
which are then p.lt to another use may not be considered a sale of the business
- 34 -
board will decide on the new bargaining unit and its implications for existing
changes the board may be i nvolved in sor t i ng out the effects on barga in ing
There are certain practices committed by either the company or the union
which are considered unfair and which are subj ect to enforcement by the labour
relat i ons boards or the court s . Most commonly li sted practi ces affect i ng
employers are interference with the rights of employees to select the union of
employees for union acti v i ty. This gener ally means that employe rs cannot
under the legislation. They cannot invoke promises which will influence an
employee's choice of a union , for example promising ''better benefits " should
the employee select one union rather than another or vote for no union. These
support of one union o r anothe r or for no uni on . What the employer can say
unde r these c i r cumstances , the manner in which he says i t , and the for um he
uses are matters which are susceptible to review by the labour relations
boards .
lockout r i ghts have been acqu i red i f the purpose i s to unde rm i ne the union .
serious bargaining .
union members. Unions are compelled to provide fair representation for all
s t r i k e or lock out dur i ng cert i f i cation , dur ing the term of a collective
Labour re lati ons boards are empowe red to stop such pr actices and to
enf orce appropr i ate r emedi e s . B y tabling i ts rulings i n the approp r i ate
cou r t , board rulings become in eff ect cou r t orde r s . Dur ing the t e r m o f a
collective agreement , the parties may resort to the grievance procedure and
f i rs t contr act or a new contr act ( i nterest d i sputes) and negot i ations on
I n all Canad ian j ur i sd ict i ons str i k es or lockouts are forb idden as a
interpretat i on of the agreement. The par t i e s are obl i ged to settle these
relations. In the United States there is no ban on work stoppages during the
term of the agreement but the vast maj or i ty of collective agreements (more
than 90 per cent of them) provide for a system of arbitration , which in effect
Histor ically Canad ian jurisdictions provided for a two stage conciliation
procedure to which the parties must abide before being in a legal position to
call a work stoppage. These procedures were generally implemented after the
strike or lockout cculd be postponed for months and , in some cases , one year
example , in the U.S. the part i es have the r i ght to strike or lockout on the
te r m i nati on date of the agreement unless the P res ident of the U . S . declar es
for 80 days .
appoi nts a conc i l i at i on off i ce r to try and settle an impass e . Should the
the government of the status of the dispute and making his recommendation for
time once bargaining has begun it is not uncommon to have this stage completed
I f the d i spute i s still not settled a conc i l iat i on board compr i s ing
appointees of the parties and a neutral chairman may be appointed. The board
w i ll also try to obtain a settlement but , fai l ing that , w i ll report to the
government its recommendations for a settlement. Again , the term of the board
i s set down i n the leg i slat i on (usua lly 3 0 days) and may be extended by the
parti es� Once the board report is made most legi slation call for another
seven to fou rteen days before the parties acqu i re the r i ght to strike or
Change s in labour relat i ons leg i slat i on dur i ng the pas t 15 years have
reduced the scope and time of gover nment i ntervention and , in some cases ,
changed its nature. The conc i l iation board stage no longe r appears in some
legi slation and wher e it does appear it is not often used in pr i vate sector
provided for but the i r implem entati on often rests on the i n i tiative of the
parties .
- 38 -
The conciliation officer stage is still widely used when impasses develop
re laxed . Unless reques ted by the par t ie s , the gove rnment m ay choose not to
loc k out after the t e r m i na t i on date of the old agreement should they not be
example , the Atlantic Provinces and the federal j urisdiction) the legislation
gives the government the option of not appointing a conciliation officer even
though the parties have requested one. However , this option is rarely used.
the parties.
are signed after the intervention of a thi rd party. This proportion is down
from about me-half that prevailed in the 1960s indicating less recourse to
pe rcentage of agreements s i gned after a work stoppage has occur red var ie s
Negotiations for a first agreement are subj ect to the same provisions in
the leg i s l at ion as negoti at ions for a new agr eement. Howeve r , the r e is one
law . I n ce rtain j ur i sd ict i ons , i nclud ing the fede ral , B r i ti sh Columb i a ,
usually after a ce rtain pe r i od has elapsed , the labour relat i ons board i s
empow ered t o impose a one year agreement. Such an agreement i s based upon
canparable situations.
- 39 -
( i i ) Strike Votes
to strike or lcckout. Stril<e votes are required by law in New Brunswick , Nova
Strike votes may or may not be governmment supervised but must always be
by secret ballot. Only Alberta and British columbia provide for government
employees in the bargaining unit (Prince Edward Island , Nova Scotia , Alberta
(Quebec) or either one or the other (New Brunswick) . Except for New Brunswick
the maj ority of those voting decide the issue. In New Brunswick the maj ority
constituency .
Lcckoot votes are also required in some j urisdictions , where more than
.
one employer make up the employer barga i n i ng unit. these j u r i sd i c t i ons
Should a vote support strike or lcckout action the parties are required ,
lcckoot. This provision is present in New Brunsw ick , Nova Scotia, Alberta and
British Columbia and the notice peria:l varies between one to three days.
Eve ry act provides for an adm in i s t rative body to adm i n i ster the
relati ons board . Quebec abol i shed its labou r relations board in 1 9 6 9 ,
I n the smaller prov i nces labour relations boards are part-time and
chai rman. The federal j urisdiction provides for a full-time bcdy and is the
only j ur i sd i ction in w h i ch all of i ts members i nclud ing the chai rman are
neutral .
labou r standards area such as m i n i mum w ages , hou r s of w ork , equal pay and
industrial standards.
Dec i s i ons of boards are gener ally f i na l . Appeals can b e made to the
The maj or respon s i b i l i ties of labour relat i ons boards include the
a c qu i s i t i on and t r a n s f e r of b a r ga i n i ng r i gh t s , c e r t i f i c a t i on and
required by the Act , and determination and control of unfair labour practices.
S ome boards (for example Ontar i o and B r i t i sh Columb ia) under ce rtain
c i rcumstances , arb i trate collect i ve agreement disp..ites and some boards can
conflicts that cane to the boards are settled in this accamncdative manner .
management and labour is the principal end cbj ective of the labour movement.
the employer and his employees on most matters affecting conditions of work.
Agreements are co- si gned by both par t i es and gover n the i r relations for
per iod s ranging from one to five years or mor e . The m i n i mum term of
parties .
Most collective agreements run for two years with a number having a three
agreements are advantageous to both parties s i nce they ensure peace and
stability in the relationship and result in savings in time and money that are
Short-term agreements have the advantage of ensu r ing that w ages and
working conditions do not get out of line with those prevailing elsewhere in
earlier pericds .
or three pages to several hundred. Some agreements simply state that current
w ages and work i ng cond i t i ons in the uni t cove red by the agreement w i ll be
- 42 -
changed by a certain amount and the new w ages and w or k i ng cond i ti ons w i ll
At the other extreme are agreements that spell out in meticulous detail
the wage rates of each occupation , the conditions of work including hours of
wor k , pens i ons , vacations , group insu.r ance , paid holidays , sen i o r i ty
a r r angements , handl ing of gr i evance s and the hundr eds of other i tems that
that it wou ld take m any pages to l i st them all . A recent analys i s by the
Canada Depar tm ent of Labour summar i zes the mos t important i tems typ i cally
found in agreements. The list includes some 1 6 4 i terns clas s i f ied under 26
main head ings . 'rhe most prevalent items are those deal i ng w i th w ages and
cond i tions of work. These are the most l i kely prov i s i ons to be found i n
restr ictions on management' s right to contract a.it work , rules governing the
There are no formal or legal rules governing the issues that are subj ect
limits the issues that can be negotiated and included in an agreement. In all
other s i tuati ons , what i s di scussed depends on what the union wants i n the
agreement , the power of the union to back up its demands , the receptiveness of
management to these demands and the power and influence management can w ield
functions that are perceived to threaten the wages and working conditions of
the ir members. Substanti al inroads have been made on these functions during
the past 2 0 years and further inroads can be expected in the future reflecting
a management rights clause. There are various types of these clauses. Some
spell out management rights. A typical clause of this sort is one that states
that management has the exclu s i ve right to m anage the bus i ness , control
prcrluction and maintain order and efficiency. Such clauses may go further and
spell out what this means , for example to determine the number and location of
schedules of prcrluction , the machines and tools to be used and the processes
of manufacturing and assembling. Still further , these clauses may spell out
spec i f i c management ri ghts conce rning the employment funct i on such as the
demote and to h i re , classify and lay off employees , providing these r i ghts
have not already been reli nqu i shed by spec if i c clauses elsewhe r e i n the
that management exercises all rights that are not specifically taken away by
the agreement.
Which type o� clause provides the best protection for management remains
a moot point. N e i ther the dec i s ions of arb i t rators nor the courts have
entirely settled the issue. One interpretation of these clauses follows the
"residual rights" theory, to the effect that all rights remain with management
the employment relat i onship are subj ect to negot iation or challenge even
though there may not be a specific clause on the issue. Thus , even though the
In the end , however , it is really not the clause itself that is important
but the qua l i ty of the labou r-management relat i onsh ip. I n mature , stable
acceptance on the part of both parties that these matter s should be j oi ntly
two or three yea r s . The latter are rare but neve rtheless have occu r red
of i ssues to be settled , the m i l i tancy of the union , the feel ings of the
employees , public opinion , the economic position of the company, the kind of
unwillingness) of the union, the wor�ers and the company to strike or lockout
and the length of time involved i n sat i s fying legal requ i rements for
conciliation .
The negot iation process has been l i kened to a poke r game whe r e bluffs ,
counter bluffs, eye movements , baJ.y gestures , words used in the conversation
all car ry mean i ng as one s ide or the othe r attempts to get the upper hand .
The process also involves knowing when to assist your opponent out of corners
- 45 -
in order to help him save face so that a mutually acceptable agreement can be
facilitated .
A var i ety of theor i e s have been developed to expla i n the negot iation
process and its culmination in a collective agreement. But the nature of the
outcanes .
before termination of the old agreement) . The usual practice in larger more
termination date of the old agreement. The timing gives both par t i e s an
opportunity to d i scus s fully the i tems on the bargai ning table and to reach
The termination date of the old agreement is one date the parties try to
lock01t deadline. Once the legal requirements have been met , the parties are
free to set a date for a s t r i ke or a lockout anyti me after the term ination
that produce s agreements , s i nce both par ti e s , in most case s , want to avoid
eleventh hour agreements in the small hours of the morning that we often read
- 46 -
Although it is the negotiation process between the parties that grabs the
headlines in the media , there are often much more difficult negotiations that
go on w ithin the organi zations of t.J-ie two sides to formulate the demands and
the personnel department , the labour relations specialist , line managers (for
example , the plant manager) , foremen and other supervisory personnel , the top
management has its own position on a particular union demand or its own demand
finance w ill be concerned about costs , foremen w ill be concerned about thei r
want to ensure uniformity of particular clauses across the company, and the
that emerged between the parties during the term of the previous agreement.
(for example , negotiating a pension clause based on U.S. law ) must be sifted ,
co-ordinated and brought together into a meaningful package which can be used
by the management negotiators in their sessions w ith the unions. The prcblem
of organiz ing this package to sati sfy the varied needs and requirements of not
only the different levels of the company but also different individuals is no
mean feat and often requ i res as much tact , sk i ll and d iplomacy as does the
management side , if an impasse develops within the company over the management
- 47 -
package , the company president can quickly resolve the matter. The union , on
the other hand , is a democratic organi zation and this is not always conducive
In most unions , demands are formulated at the local union level mainly by
membe r s . Union headquarters may request the local to include par t i cular
demands that are being negotiated union-wide. In other unions the process of
formulating demands may involve more than one local and indeed may involve all
involves a pattern-settipg company for the industry (for example, the United
Auto Workers and one of the big three auto companies) , area-wide bargaining as
in West Coast p.ilp and paper and industry-wide bargaining as in the railways.
I n a few cases uni on demands may originate f rom the U.S . Canad i an locals
b r e t h r e n w h en i t c a m e to a f i na l dec i s i on on the l i s t of d e m a nd s .
character reflecting the North Ame r ican market for the products of these
indust r i e s . I n these latter multi -local s itua t i ons , how eve r , the union
the needs and requ i r ements at the plant level . The latter a r e essenti al to
satisfy the local membership for , if they are not included , there is a danger
that the resulting agreement will not be ratified by the local rank and file.
Th i s i s not the end of the story. The union demands must also reflect
the var iety of issues of par t i cular conce rns to d i ffe rent segments of the
union mem be r ship. For example , older w or k e rs w i ll want prov i s i ons that
empha s i z e pen s i ons , younge r workers would prefer to see demands focus on
skilled workers will want to ensure that the wage differential between them
- 48 -
and unsk illed workers is w idened or at least not narrowed. These conflicting
claims are not easily resolved. Collective bargaining history is replete w ith
unsk illed and semi-skilled brethren , often find themselves forced to accept
membership. Given their key position in the production process they are able
to take effecti ve s t r i k e act i on and close down ope r at i ons forc i ng both
j
'
solu t i ons s u i ted to the i r need s . The Uni ted Auto Wor k e r s and the Uni ted
Once the par t i e s have formulated the i r pos i t i on and demands , ser i otls
negoti ations begin between them. At this point , an important question is who
hand les the barga i n i n g . Thi s i s less a problem for the uni on than for
relationship, representatives from the union side are the local union officers
s i tuat i ons or key barga i i ng s i tuat i ons , the national or international union
on the uni on s ide can be expected to be h i ghly exper i enced or s k i lled in the
represented it stands to lose cons ide rably. A poor management negot i ator ,
face- to-face w i th expe r ienced and s k i lled union negotiators , cannot only
qu ickly undo the w ork , energy and expense that went into develop i ng the
manage�ent pos i ti on , but can also be very costly in terms of allow ing the
for example , finance , or certain line management. Employer organi zations may
do not belong to an employer organi zat ion that provides thi s service are
usually well advi sed to obtain the services of specialists such as labou r
negotiations .
The signing of a collective agreement does not signal the end of union
barga i n i ng one , two , three or more years down the road , depend i ng on the
Even the most carefully-worded agreement cannot cover all the possible
situations that may arise in the employment relationship; and many agreements
having been signed under the pressure of a deadline are far from this ideal.
Many clauses are the result of compromises made during the final stages of the
the agreement signed before a strike or 1o::::kout deadline. Other clauses may
experience to deal with the particular issues at hand. And still others may
s imply prov ide for a mechani s m for the two parties to continue d i scussing
particular i s sues after the agreement has been signed. The result i s a
procedures for resolving problems that a r i se out of the inte rpr etation and
Management daily initiates actions that will inevitably confl ict with the
agreement . For example , a foreman may promote one employee when another feels
he should have · been promoted accord ing to the terms of the agreement .
Management may assign an employee to some work wi thout a change in pay which
the union believes calls for a higher rate of pay . Certain employees may be
denied a paid hol iday to which they believe they are entitled . The examples
are endless . In most cases these actions are taken in ignorance of the
agreement . Not all managers read the agreement and even the personnel
department may not be fully conversant with all the clauses and the i r nuances .
In other instances changing conditions call for new methods and management may
cannot strike or lockout over matters ari sing out of the application and
grievance procedure ensures the orderly and j ust processing and resolution of
comp l a i nts and other d i fferences between the par t ies. It ensures , for
example, that enployees recei ve a fai r hear ing of their grievances right on
stoppages in protest over its act i ons , that the r i ghts of al l three
parties, the employee, the ccrnpany, and the union, are protected and that the
There are many types of grievance procedures . Some are informal in which
larger companies , provide for formal steps with time limits between each step •
. .
Three or four steps may be provided for in these procedures with both the
matters . Most grievances are generally settled quickly and informally between
not solved to the satisfaction of the employee , and the union steward believes
Thi s step may be the next level of supervision and the procedure may
involve a formal meeting between management , the union steward or officer from
the uni on local , and the employee . If still not resolved , a third step may
involve the company ' s top management and an officer fran union headquarters .
At each step of the procedure , the parties are usually free to call in outside
If settlement is still not reached , the case then goes to f inal and
an impartial chairman selected by the parties . Should the parties not be able
to agree upon an arbitrator the Minister of Labour or the labour relations
- 52 -
arbitrator , set the date for the hear ings and present all the evidence . Most
Since the parties tend to use the same arbitrator for thei r cases , scheduling
grievances going to arbitration i s large , the ensuing log j am may threaten the
whole gr ievance procedure and ser iously undermine the collective bargaining
relationship.
agreement , it is a fairly easy matter for either party to flood the system and
prevent i t from operating effectively and efficiently . The need for a good
Apart from thi s , overloading of the procedure can result from poorly-
every turn , from rapid economic and social change that forces the company
exper ience to assist the parties in administer ing the agreement . To meet the
the parties to speed up the arbitration process . Ontario , for example , at the
request of either party , now provides for the establi shment of arbitration to
- 53 -
hear and reply to cases within a specified period . This expedited procedure
discipline where swift attention to the matter is essent ial for continued
Both the law and court decisions have given the arbitration function
shown that an arbitrator went beyond the terms of his reference or did not
provide a fair hearing of the d i spute . Arbi trators can apply remedies , assess
and award damages and change or modify an action . The latter has become a
particularly thorny i ssue in discharge cases . In these cases arbi trators have
not hesitated to impose their own j udgment on the severi ty of the penalty .
Discharge i s the ultimate di scipline weapon and its sometime capr icous use by
certain employers has · resulted in arbi trators departing from the strict
arbitrators can become orders of the court and therefore legally enforceable .
for example , the federal , the union may negotiate the effects of technolog ical
reached , str ike or lockout action can be taken provided that the parties have
met the legal requirements for concil iation . Similarly , the parties may
introduce "re-opener" clauses into the agreement . These clauses allow the
- 54 -
parties to re-negotiate an issue dur ing the term of the agreement wi th the
Such a clause provides the parties with the right to re-negotiate wages dur ing
the term of the agreement . These clauses are important in per iods of rapidly
r i sing wages and allows the parties to sign a long-term agreement on other
issues but gives them the flex ibility of dealing with the wage issue at
regular intervals . Usually the parties have to observe a per iod of one year
(a) Introduction
public sector workers such as municipal workers , pol ice and firefighters is as
the extension of bargaining rights to other publ ic sectors including the civil
service and certain sectors of education and health care did not occur until
the 1960s . Saskatchewan granted bargaining rights to all workers , public and
Ontario granted its civil servants bargaining rights but not strike
rights in 1962 and Quebec followed in 1965 giving both bargaining and strike
continent is generally considered to be the Public Service Staff Relat ions Act
(PSSRA) of 1967 giving federal civil servants both bargaining and strike
rights . Only some , (New Brunswick , Newfoundland and Bri tish Columbia in
addi tion to Saskatchewan , Quebec and Federal ) give their employees strike
- 55 -
impasses . Only British Columbia gives the government the right to lockout .
In a l l other jur i sdictions this r ight i s not ava i l able to governments. In the
U.S., strike rights are not ava i l able to most publ ic sector workers including
civ i l servants at the federal level and most states. Col lective bargaining
before strike r ights are acquired ( in those j ur i sdictions which provide for
these rights) , l.i stings of unfair labour practices which are illegal under the
acts , prohibition of strikes during the term of the agreement , and provision
similari t ies between the two sectors . However , differences are much more
important and interesting . Maj or leg islative differences between the publ ic
and private sectors are discussed in the next section followed by a bri ef
In some jurisdictions , one public sector act covers all public sector
workers , other than those covered by the pr ivate sector act . At the Federal
level , the Canada Labour Code applies to the pr ivate sector plus certain crown
canpanies such as Canada Post , CNR and Air Canada . The Public Service Staff
Relations Act covers civil servants and other public sector snployees . In
extreme example with separate acts for pol ice , firefighters , civil servants ,
teachers and hospitals . At the other extreme i s Quebec where the Labour Code
applies equally to all workers public and pr ivate al ike . However , special
prov isions within the Code apply to different categories of worker ' s including
- 56 -
Unlike the private sector , most public sector acts pre-determine these
uni ts in the legislation . For example the Federal and New Brunswick statutes
j urisdict ion there are more than 100 bargaining units each representing a
Ontario and other j urisdictions provide for a small number of very broad
province-wide bargaining units for their civil servants . Some j urisdict ions
for example , Ontario and Alberta also grant statutory recogni tion to the
which civil servants must belong is named in the statute . In other respects ,
workers but not to others . These rights are not found consistently. For
example , in Ontari o , civil servants do not have strike rights but teachers
Where str ike rights are available thi rd party intervention procedures
sector before these rights can be exercised . However , these procedures are
applied much more rigidly in the public than in the pr ivate sector . Strike
rights in the public sector are subject to other restraints as well . Publ ic
sector acts usually designate certain employees in bargaining units that have
- 57 -
strike r ights to remain on the j ob during a str ike . Thi s ensures continuation
the affected union determines who will stay behind on the job in the event of
a str ike . Further dimunition of str ike rights i s also found in special acts .
For example , in British Columbia most publ ic sector workers are subject to the
In two j urisdictions , the Federal and New Brunswick , the leg islation
provides public sector workers str ike r ights in a novel manner . In both
to arbitration to settle the i r impasses . Thi s cho ice is not avai lable to
government , which must abide by the wishes of their employees on this matter .
Further , bargaining uni ts can change thei r choice . For example in the Federal
jur isdict ion bargaining uni ts make thei r choice before the comnencement of
develops , either party may request arbitration . The award of the arbitration
tribunal i s final and binding . In the next round of bargaining the bargaining
unit may request that bargaining be conducted in the str ike route . In thi s
route th e bargaining uni t has the right t o strike to back up its demands
restrictions ; the parties are free to bargain over and to include in thei r
the l i sting of cri teria for wage setting purposes . The PSSRA, for example ,
sets down five cri teria which are to be taken into account in determining the
level of wage and salary increases . These include wages for canparable
needs of the public service , wages that are considered fai r for the work to be
done and the qual i fications required , and any other factor that appears
relevant in the particular dispute . Similar cri teria are found in other public
goverrnnent ' s fi scal position and goverrnnent econanic policy have been added to
the list . Criteri a have thei r major impact in arbitration where i t is usually
legislati on . The PSSRA , for example , provides for the establishment of the
to Parliament .
the private sector . Quebec and Saskatchewan are important exceptions . There ,
Although the general obj �tives and nature of labour relations in private
and public sectors are generally similar there are important differences that
First , unions in the publ ic sector are dominated by whi te collar workers
whi te collar workers in the private sector are organized . Thi s has
implications among other things for str ike proneness , which tends to be less
in the publ ic sector , and the nature of bargaining demands , which tends to be
of a higher order in the public than in the private sector . For example
demands in the publ ic sector reflect the unique needs of professio�al workers
research , etc . Monetary issues are important but relatively less so compared
Second , almost all public sector workers , which have the protection of
unions for that purpose . In contrast , i n the pr ivate sector , large chunks of
workers such as those in trade , banking and insurance have yet to exercise
control the purse str ings . The result is often a type of bargaining not found
in the pr ivate sector . Thus , terms such as ''multi lateral " bargaining
11phantan11 bargaining or " end runs" have emerged in the lexicon to describe
the union bargaining team may be going through the motions with the employer
employer ' s position or to loosen the purse string to allow the employer to
are now including their own officials on the employer hospital or education
final settlements .
Fourth , most unions in the public sector are national or "home grown" ,
union members .
Fifth , most publ ic sector unions have not joined one of the central
and other professional workers , have chosen vol untari l y to remain outside
legislation prevents aff i l iation with the central federations. This is the
s i tuation in most j urisdicti ons with respect to pol ice and fire-fighters.
These are just some of the major differences between the two sectors .
can . For example , in recent years governments have found or felt themselves
provincial goverrnnents have passed restraint legislation temporar ily lim i ting
bargaining and str ike r ights and imposing wage ceilings on civil servants and
other public sector workers . The legislation has been reasonably successful
in keeping wage increases under control but its future is in doubt . The
that restrict barga ining and strike rights on the grounds , that they are in
conf l ict with the new Charter of Rights. A successful resul t not only would
reduce goverrnnents' powers to tamper with the r ights of their employees but
a l so could conceivabl y force legis lative changes to put pub l ic sector workers
bargaining and strike rights on a footing approaching that of the pri vate
VI I Conclusion
the bes t sys tem �or the res o l uti on of conf 1 i c t between l abour and
management. But g i ven the nature of our free m i xed enterpr i s e economy we
would be hard-pressed to find a better system. Thi s does not mean we cannot
improve it. We have and have now brought i t to the point where there
opportunity to resol ve major differences once every one , two, three or more
years wi th the fu l 1 use of the i r econom i c power o r the use o f a thi rd par ty
neutral . Once an agreement has been signed , the system then prov ides for the
function whi le at the same time ensuri ng an effecti ve and orderl y outl et
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